Markets closed in a tailspin today as the world struggled to come to grips with President Trump's new economic order.

• Stocks suffered their worst fall in five years following yesterday's tariff announcement.
• The S&P 500 plunged 4.8%, as over $2 trillion of its constituents' market caps went up in smoke. The tech heavy Nasdaq cratered 6%, while the Russell 2000 index of small caps shed 6.6%.

Zoom in: On a more targeted level, individual stocks were rocked as investors dove into the potential tariff exposures of individual industries and companies.

• Apple shares fell over 9%, wiping out around $325 billion in market value.
• Best Buy, which sources three-quarters of the products it sells from China and Mexico, fell nearly 18%.

Apparel companies were decimated. Nike shares closed down over 14%, hitting a level not seen since 2017. The Gap (-20%), Abercrombie & Fitch (-16%), Macy's (-14%) and Lululemon (-10%) were all pummeled.

The big picture: Fear was evident well beyond the stock market. A combination of concerns around the U.S. growth outlook, rising inflation and a global pivot away from the U.S. economic ecosystem drove down the value of the dollar.

• Treasury yields fell as investors piled into safe havens. Yields on the 10-year note touched 4.002%, the first time it's hit that level since October.

🇪🇺 European Commission President Ursula von der Leyen said the EU was "already finalizing a first package of countermeasures in response to tariffs on steel" and "we are now preparing for further countermeasures."

🇨🇳 China's Commerce Ministry said in a statement carried by state media it "firmly opposes" and "will resolutely adopt countermeasures to safeguard its rights and interests." A ministry spokesperson added: "There is no winner in a trade war, and protectionism leads nowhere."

🇲🇽 Mexican President Claudia Sheinbaum said the country will "announce a comprehensive program, not a tit-for-tat on tariffs" and plans to "strengthen the economy under any circumstance," per a Reuters translation.

🇯🇵 Japanese Prime Minister Shigeru Ishiba said Japan was "making the largest amount of investment" to the U.S. and questioned whether it "makes sense to apply uniform tariffs to all countries," adding: "We're putting all options on the table in considering the most effective response."

🇨🇦 Canadian Prime Minister Mark Carney vowed to fight the tariffs with countermeasures. "We are going to protect our workers," he said. "In a crisis, it's important to come together and it's essential to act with purpose and with force."

• Carney announced a 25% tariff on all U.S. vehicle imports "that do not comply with our free trade agreement" in response to Trump's tariffs on imported vehicles that took effect today.

Go deeper

🚗 Stellantis temporarily idled plants in Canada and Mexico. The Jeep and Ram maker said production would be paused for two weeks as it faces Trump's tariffs. (Bloomberg)

🤳 A TikTok deal will be announced before this weekend's deadline, Vice President JD Vance said. (Reuters)

🤺 WeightWatchers investor Premca Capital is launching a proxy fight with the company. It wants a management shake-up, an overhauled app and a growth plan. (WSJ)